Are platforms ETRADE PRO/Power ETRADE free to all clients? ETRADE brokerage and IRA account cost in 2023.

E*TRADE Cost

E*TRADE is a popular broker that offers commission-free trading and access to a good selection of free trading platforms. The broker provides traders with a solid range of investment products and services, but only some are free.

You must pay for several things as an E*TRADE customer, and it is good to know what they are before getting surprised by hidden (or unexpected) fees.

Keep reading to learn more about which of E*TRADE’s services are free.


Is E*TRADE Free?

E*TRADE can be free for some and not for others. It depends on the broker’s tools and services you use.

For example, opening an account and placing trades on U.S. exchange-listed stocks and ETFs is free. It is also free to maintain an account, as there are no inactivity fees or annual membership charges.

On the other hand, some ‘free’ services require that you maintain a minimum balance in your trading account. Features like access to professional trading software and free market data are examples. You’ll also see some reduced prices based on trading activity and a minimum account balance.

You will pay a fee if you want to invest in securities trading on the OTC exchanges, ADRs, options, managed portfolios, or fixed-income products. There are also fees for account management services, such as wire transfers and ACATS.


Is ETRADE Free


Cost to Open

It doesn’t cost anything to open an E*TRADE account, but (again) you will need to make an initial deposit of at least $1,000 to unlock some useful features. Live market data and access to E*TRADE Pro are two examples.

One thing to note is that there are no inactivity fees or account minimums to worry about. Once your account is open and funded, you do not need to maintain an active balance. However, some balance-specific features will stop working if your account balance drops below certain levels.


E*TRADE Pro Cost

As a platform, E*TRADE Pro is free. However, there are some requirements to meet before gaining access to the software.

First, you must have an account balance of at least $1,000 to get the download link for the platform. The same $1,000 is also required to get live market data.


E*TRADE pro Cost


Making 30+ trades per quarter will also unlock platform access, but you would still need to pay for market data.


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Power E*TRADE Cost

Power E*TRADE is free to use, and downloading the software comes with no specific requirements.

That said, if you want up-to-the-minute market data, you’ll still need at least $1,000 in your account to unlock the feature. You can purchase your own market data as an alternative, however.


Power E*TRADE Cost


E*TRADE Trading Fees and Commissions

Here is a more detailed description of the trading fees you can expect to pay at E*TRADE.

ProductPrice
Stocks and ETFs $0
Options $0.65 per contract
Mutual funds $19.95
Bonds $1 per bond with $10 minimum, $250 maximum
Futures $1.50 per contract, per side + fees
Certificates of Deposit (CDs) $24.95

* - 50 cents per options contract for users who make 30 or more trades in the prior calendar quarter.


ETFs & Stocks

ETFs and stocks are (mostly) free. E*TRADE doesn’t charge any commissions on U.S. exchange-listed ETFs and stocks.

Some small fees do come from the exchanges, though. Exchange fees are standard among all brokers and are only significant at high volume since they are fractions of a cent per share.

Stocks trading on the OTC market come with a fee of $6.95 per trade (regardless of share quantity). The cost for OTC securities can be reduced to $4.95 when the 30+ trade/quarter threshold has been met.


Options

Options on stocks and ETFs cost $0.65 per contract. The options fee can be reduced to $0.50 per contract by making over 30 trades per quarter.


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Futures

Futures contracts come at a $1.50 fee that is charged per side (open and close). Cryptocurrency futures cost $2.50 per contract per side.


Bonds

Treasury bonds do not cost anything to trade, but some bonds come at a small cost. Secondary bond trades cost $1 each, and there is a $10 minimum to purchase.


Mutual Funds

Mutual funds are priced differently depending on the type. No load mutual funds cost $0. Other mutual funds cost $19.99. Redeeming the mutual fund early comes with a $49.99 fee.


Account Management Fees

In addition to trading fees, there are also some account management fees to note.

Brokerage account transfers (ACAT) cost $25 for partial transfers and $75 for complete transfers. The $25 partial account transfer fee can be waived if there is still $5000 left in the account after the transfer is complete.

Wire transfers cost $25 (outgoing).

Checks cost $10 each and $20 to send via mail overnight. You must pay an additional $15 per copy if you want copies.

Reorganization fees often catch traders off guard. In the event of a stock split, a merger, etc., E*TRADE must ‘reorganize’ the stock in your portfolio. For that, the broker charges $38 per action.


Personalized Investment Services (Managed Portfolios)

E*TRADE offers several personalized investment services that come with some management fees. The degree of management varies from service to service, and the required account balance and associated fees reflect the amount of involvement E*TRADE has.


Core

The Core Portfolio is E*TRADE’s automated investment solution. It takes a minimum of $500 to start, and there is an annual advisory fee of 0.30%.


Blend

The Blend Portfolio is built with the help of a financial consultant. Blend Portfolios are managed by E*TRADE.

It takes a minimum of $25,000 to start, and there is a variable annual advisory fee ranging from 0.65% to 0.90%.


Fixed Income Portfolios

The Fixed Income Portfolio is a managed portfolio tailored to customer specifications. It takes a minimum of $250,000 to start, and annual rates range from 0.35% to 0.45%.


Margin Rates

Another cost to investing at E*TRADE comes with margin use. You will pay different margin rates depending on your account size. Rates are always subject to change, but here is an image as a reference.

Debit Balance Margin Interest Rates
$250,000 - $499,999.99 11.45%
$100,000 - $249,999.99 11.95%
$50,000 - $99,999.99 12.45%
$25,000 - $49,999.99 12.95%
$10,000 - $24,999.99 13.20%
$0 - $9,999.99 13.45%


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